The actions of Puma have sunk 15.96% this Friday in the German Stock Exchange After the sportswear manufacturer has cited the «lack of impulse of the brand», the Tariffs in the United States and the High levels of inventory as the reasons why Now it provides sales falls this year.
In his report in the second quarter results published on Thursday night, Puma announced that He no longer hopes to achieve the growth of sales adjusted by exchange rate that he had anticipated for the rest of 2025. «It is expected that the weakness observed in the second trimester persists, which will result in higher inventory levels«, said the company. In this context, it has indicated that it will continue to implement measures to actively reduce excess inventory.» Likewise, it is expected that the Macroeconomic challenges continuetogether with the negative, although mitigated impact, of US tariffs, affecting performance throughout the year, «he said. In response to these events, Puma has reviewed its annual guide. Now it expects that sales adjusted by exchange rate decrease by a low percentage of two digits (previously an increase of a low -to -medium digit was expected). As for the EBIT, anticipates losses in the year 2025 (previously an EBIT of between 445 and 525 million euros was projected), reflecting the weakening of sales, higher winds against currencies, the impact of US tariffs and additional measures, including extraordinary charges, for Adjust the cost structure During the second half of the year. As for the results of the second quarter, a Weakest commercial performance of the anticipated in its key markets (North America, Europe and Gran China) affected Puma's sales and operational performance during the period. As a result, the adjusted EBIT was below expectations. The Sales in the second quarter fell 2.0% adjusted by exchange rate (–8.3% in reported figures)up to 1,942.2 million euros. The adjusted EBIT, excluding extraordinary costs, was reduced to –13.2 million euros. In addition to the general weakening of sales, this fall in the adjusted EBIT was mainly due to A lower margin of gross benefit. Puma incurred extraordinary costs for 84.6 million euros in the quarter. The net loss of quarter amounted to –247 million euros.
What do analysts think?
«Trump tariffs have hit the sportswear market, and now Puma follows the steps of Nike and Lululemon When warning about the negative impact of these taxes, «says AJ Bell experts.
Much of the clothes and sports shoes are manufactured in Asia and is subject to tariffs when entering the United States. «Everything indicates that wholesalers They were supplied excessively before the new tariffs, which has generated a situation in which Inventory levels are now significantly higher than demand«, these analysts point out. What has happened with Puma» is exactly what investors feared, which exerts even more pressure on an action price already depressed. «The CEO of Puma, Puma, CEO, Arthur Hoeldwho assumed the position on July 1, has declared that The company needs to «correct the course». «This year 2025 will be a restart for Puma and 2026 will be a year of transition for us,» he said.